Lugano challenges Italy on cryptocurrencies

Currently, in Italy, capital gains obtained from the sale of cryptocurrencies face a 26% taxation. However, it is likely to increase to 42 percent from 2025. A change that, according to data from Tax Foundation Europe, would make Italy the country with the highest taxation on cryptocurrencies in Europe.

Compared to its European neighbors, in contrast, in Switzerland, the taxation of cryptocurrencies is very simple, as it follows the logic of traditional securities: for most investors, in fact, profits from private cryptocurrency trading (buying and selling) have no impact on income tax. This means that the profit from resale is tax-free.

However, cryptocurrencies, like all securities, are considered a taxable asset, subject to wealth tax (Impôt sur la fortune). For the most common ones, the Federal Tax Administration (FTA) calculates an official market value at the end of the year based on the average of prices from various trading platforms. For other currencies, however, the value can be obtained from information platforms (e.g. CoinMarketCap).

However, there are cases in which cryptocurrency income must be reported as income:

- Airdrop

- Rewards from staking

- Cryptocurrency trading for professional purposes

- Cryptocurrency mining

Our Professionals are available to provide any clarification.